Tax Audit and Annual Accounts
The records a business should have ready for its tax audit (Form 3CD) and annual accounts: ledgers and bank statements, sales and purchase registers, GST reconciliations, TDS returns, fixed-asset register, loan statements, stock records and related-party details.
Tax audit applies where turnover exceeds ₹1 crore (₹10 crore if cash receipts and payments are within 5%), or professional receipts exceed ₹50 lakh, or presumptive income is declared below the deemed rate. The report is due by 30 September.
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Books and bank
- Trial balance, ledgers and journal from the accounting software (Tally, Zoho, QuickBooks backup or access)
- Bank statements for every account for the full year, including loan and credit-card accounts
- Cash book, with the cash balance on 31 March
- Fixed-asset register with purchase invoices for additions and details of disposals
- Closing stock valuation with the method and quantity records
Sales, purchases and GST
- Sales and purchase registers matching GSTR-1 and GSTR-3B
- GST reconciliation — GSTR-2B versus books for input credit; GSTR-9 workings
- Export invoices, LUT, shipping bills and FIRCs
- Debit and credit notes issued and received
TDS and payroll
- TDS returns filed (24Q, 26Q, 27Q) with challans; TRACES justification reports
- Salary register, Form 16s issued, PF and ESI challans, profession tax payments
- Contractor and professional ledgers to check TDS on every payment above the threshold
Loans, related parties and compliance
- Loan sanction letters, statements and interest certificates; unsecured loans with confirmations and the mode of receipt (cash loans above ₹20,000 attract penalty)
- Related-party transactions — list with amounts (section 40A(2)(b); 36 of the 2025 Act); transfer-pricing documentation for foreign affiliates
- Details of payments above ₹10,000 in cash, and cash receipts above ₹2 lakh (sections 40A(3) and 269ST (186 of the 2025 Act))
- MSME supplier list with payment dates — payments beyond 45 days are disallowed until paid
- Advance tax challans and last year's audit report and return
Company-specific
- Board and general meeting minutes, share register, statutory registers
- Previous year's audited financials and the auditor's appointment letter
- Details of directors' remuneration, deposits and loans to directors (section 185/186 compliance)
- CSR spending, if turnover, net worth or profit crosses the CSR thresholds
Before you send
- Reconcile GST and books before the audit starts — the 3CD asks for turnover as per GST returns against books.
- Cash transactions are where most audit qualifications arise; keep every cash receipt and payment under the limits.
- Tax audit and the income tax return are separate filings: report by 30 September, return by 31 October.
Disclaimer. This page is a general reference prepared from the law and notifications as we understand them on the date shown. It is not legal, tax or professional advice and does not create a client relationship; rates, thresholds and due dates change and your position depends on facts we have not seen. Please confirm with us before acting on anything here. I. H. Khan and Associates accepts no liability for decisions taken on the basis of this page. Section numbers are those of the Income-tax Act, 2025, in force from 1 April 2026, with the 1961 Act number in brackets (pages about the FY 2025-26 return, which the 1961 Act still governs, quote that Act first) — see our section map.
Other checklists: Income tax return (residents) · NRI income tax return · GST registration · Private limited company · LLP registration · UAE company formation · NRI property sale
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